Federal Reserve Vice Chair for Supervision Michael Barr
- January data was stronger than expected for both jobs and inflation.
- Fed is looking at “totality” of the numbers.
- Lack of historical parallels makes current monetary policy decisions “difficult.”
- Data suggest Fed is on a “good path,” but still early to say there will be a soft landing.
Putting these two together:
- January data was stronger than expected for both jobs and inflation.
- Fed is looking at “totality” of the numbers.
Doesn’t sound too dovish to me. If inflation and jobs are up that’d be tighter for longer, at the margin, if I had a chair at the FOMC table.
More:
- Still an imbalance between housing supply and demand.
- High interest rates are dampening both sales and purchases of existing homes.
- BTFP was successful in ensuring bank liquidity at a moment of stress.
- Not seeing liquidity pressures in the banking system today.
- CRE pressures seen today are more “old fashioned” risk banks typically face.
- CRE pressures are acute in offices in certain business districts.
- There will be price compression and losses on CRE, but don’t expect acute pressure on banks.
This article was written by Eamonn Sheridan at www.forexlive.com. Source